Ask HN: Do VCs introduce risk and instability into the general economy?

1 pointconfoundcofound3 comments

By funding the inorganic growth of yet-to-be proven businesses with the intent of taking them to scale, ideally to the public, does venture capital introduce systemic risk? Some of these companies have disrupted and dominated markets due to venture subsidies, not sound and profitable business models. Are VCs socializing the risk to the public?

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> Some of these companies have disrupted and dominated markets due to venture subsidies, not sound and profitable business models

That benefits consumers who get subsidised low prices.

Until the subsidies run out and the underlying model is finally put to the test, at scale with the public.

What's the downside for consumers? I don't think they lose out.

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